Jose wants to buy a stereo for $650 and pay for it using a credit card that has an APR of 19.85% Jose will make the minimum payment of $20. What is joses total code of using credit

Question

Ezequiel Mcdowell

Mathematics

14 May, 03:14

Jose wants to buy a stereo for $650 and pay for it using a credit card that has an APR of 19.85% Jose will make the minimum payment of $20. What is joses total code of using credit

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Answers (1)

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Adriana Costa · Answer 1

Given:

Credit card balance : 650

APR: 19.85%

Minimum payment : 20

I used an online Credit card calculator to solve for the total amount that Jose will pay for his purchase and how long it would take him to pay it.

It would take Jose 4 years to pay off his stereo.

4 years x 12 mos/yr = 48 months

48 mos x 20 min. pyt = 960 total amount paid.

960 - 650 = 310.

Had Jose opted to pay in cash, he would have been able to save 310.